As part of the settlement, the business must give the FTC more than $1.1 million.
There were accusations that Razer represented its notorious Zephyr masks as N95-grade when in fact it did not get them certified at all. As a result, the company is required to pay the Federal Trade Commission more than $1.1 million to settle these charges. Around the time that the epidemic was at its worst, the manufacturer of gaming peripherals introduced Zephyr, a high-tech face mask that featured RGB lighting built right in. The “Pro” version, which included voice amplification, was released around half a year later, in the beginning of 2022. When Razer first introduced the Zephyr, the business claimed that it was just as effective as a N95 mask. However, the company then changed its mind and removed any references to “N95-grade” filters from its website and other marketing materials. This was done after it became public knowledge that the firm had failed to secure the appropriate certification.
The Federal Trade Commission asserts that Razer did not submit the Zephyr masks for testing to either the Food and Drug Administration (FDA) or the National Institute for Occupational Safety and Health (NIOSH), which is the organization that is responsible for issuing the official certification for masks that are able to filter out 95 percent of airborne particles. Without a doubt, Razer is not included on the list of firms that are authorized by NIOSH to produce N95 masks, which can be found on its website. In its complaint, the Federal Trade Commission (FTC) accused Razer of only discontinuing its deceptive advertising after receiving outcry from customers.
The FTC is required to receive the income that the company made from the sale of Zephyr, which amounts to $1,071,254.33 in total revenue. The FTC will then utilize this revenue to reimburse customers who were negatively impacted by the situation. Note that the Zephyr masks have a minimum price tag of one hundred dollars. A fine of one hundred thousand dollars will also be paid by the company for its baseless health claims. In addition to ordering Razer to refund customers, the Federal Trade Commission (FTC) also forbade the company from making any claims that it is selling items that lessen the likelihood of someone becoming infected with or transmitting the COVID-19 virus without first obtaining the appropriate approval from the FDA. In addition, Razer is barred from making claims about the health benefits of its products that are not supported by scientific evidence, and it is also prohibited from “falsely claiming that any product meets government-established standards when it has not.”